EARNINGS: Bank sees shares rise after reporting loan growth

CARLSBAD -- Security Business Bank reported first-quarter profit
of $309,000, an 11 percent drop from the first quarter of 2007 that
it attributed to lower interest rates available to borrowers.

The bank, which has locations in Carlsbad, Carmel Valley and
downtown San Diego, also upped its provision for loan losses during
the first quarter to $120,000, according to a press release it
issued Monday morning.

The bank nevertheless reported growth in both customer deposits
and loans to its business clients. Its volume of outstanding loans
grew 24 percent to $160 million. Its deposits grew 23 percent to
$157 million over the 12 months to March 31, it reported.

A small volume of bank shares are traded daily as SBBK on an
over-the-counter exchange. They tacked on 15 cents to $13.40 Monday
morning after its announcement.